In an interview with Forbes, the hotel supply firm announced that it will lay off about 10 percent of its workforce.
“We will take a huge hit on revenue because of this,” Forbes CEO Joe Gebbia said.
“But our focus is to rebuild.
We’re going to invest $3 billion in the company, and we’re going back to the business of doing business.”
The news comes after the firm said in May that it was “unable to keep up with the demand” for its products, as hotel occupancy rose across the country.
The company said it was able to turn to suppliers and third-party vendors for inventory, but said it’s struggling to meet the growing demand for hotel rooms.
The news also comes as the U.S. is preparing for the first major hurricane season, and as the president of the Federal Reserve, Janet Yellen, has pledged to keep interest rates near zero.
Forbes said the company’s financial results were hurt by a $3.9 billion writedown in the first quarter.
The firm said it expects revenue in the current quarter to fall $2.3 billion.